Stocks gain 102 points on selective buying

KARACHI: Stocks bou­nced back on Wed­nesday as the KSE-100 index recorded gains of 102.2 points (0.24 per cent) and closed at 42,204.03.

Investors took fresh positions in technology, cement, chemical and selected banking stocks while exploration & production sector also turned green in response to an uptick in the international crude prices.

The market seemed to discount any major disruptions over the politically-charged atmosphere where opposition alliance is slated to hold a power show in Lahore on Dec 13 followed by the threat to submit resignations from national and provincial assemblies to the party heads by Dec 31.

The government is holding its ground as Prime Minister Imran Khan said that in the eventuality of resignations of the opposition members, the government would proceed with by-elections on the vacated seats.

Investors were however ruffled by the Federal Minister for Planning and Development Asad Umar’s warning that the government may have no choice but to impose further restrictions in the next two weeks if the violation of Covid-19 standard operating procedures continues.

They thought that a mixture of political and economic negatives would be a lethal combination. Yet no one could argue over the daily spike in Covid-19 cases and all political parties giving little thought to the SOPs.

The market took off on a positive note and rose to intra-day high by 248 points. During the day, the benchmark dipped to intra-day low by 71 points. Foreign investors proceeded with their offloading stocks worth $0.72 million.

Among local participants, companies, mutual funds and brokers booked profit but insurance companies purchased shares of $1.70m. Volumes increased from 409.7m shares to 438.1m shares (7pc day-on-day).

Traded value also increased by 3pc to reach $118.3m as against $115.3m. TRG Pakistan was the volume leader with 33m shares changing hands. Major scrips that supported the index included Oil and Gas Development Company, TRG, United Bank Ltd, Habib Bank Ltd, Pakistan Petroleum Ltd, National Bank of Pakistan, and Pakistan Oilfields Ltd.